♪ >> hi there. tonight's top three trades, research in motion out with disappointing earnings. can the company get over its blackberry blues. we're tracking the conference call and breaking down the call with a top analyst. the stock, by the way, set to open in ten minutes time. should you be hitting the sidelines on apple. ipad sales may be disappointing, and you should get out of the way. invest -- and best buy makes a move away from the big box store format but is it too little too late? only one day left in this quarter. a lot of people out there saying what should i do now and taking a look at a bunch of winners

they missed out on and a bunch of losers they are thinking it's time to buy. let's take a look at worst performers of the quarter. >> let's do it. this is an interesting mix here. it really sort of illustrates the questions in the marketplace. you know, you've got solar, for instance. >> can i start this ball rolling. >> yeah. >> go ahead. take us there. >> this is my thing with -- you want to identify underperformance and maybe they are a buy. >> yeah. >> they are underperforming for a reason. would i submit that if they haven't performed on this tape, when are they going to perform? a name like first solar who gordon johnson has been all over. >> right. >> that stock is not going to catch up nor are some of the other ones. supervalue might be worth a look, mention that had before, but i'm here to tell you the winners should continue to win. goes to joe's book title. buy high, sell higher. don't try to buy stocks because they underperformed other names. they won't play catchup because candidly they rather do. >> on this list of performers is

also one of the top performers, the top performer in fact of 2011, and that is oil and gas is this a pullback that you would buy at this point? >> cabot, it is, took to the mid to high 30s. looking at stock again and starting nibbling on it here at these levels. natural gas long term has a huge upside. however, right now it's just getting pounded. anything natural gas-related is getting killed, but i don't think the story, like a first solar, i'll agree with guy here, that story could be over with. the natural gas story, i think there could be another chapter as we get on the year. >> joe, what kind of chapter would it be, a sad chapter or uplifting chanter when it comes to nat gas as we had theories come out saying $1.36 on natural gas, dennis carpman, saying a $1 price range is what we could see as well? >> peek theory is 1.36. guy and i have mentioned going back months now. natural gas is tremendously

oversupplied, and whether you're happy or sad is going to depend upon whether you're long or short, and right now being short is the way to go. there's no fundamental reason to get in front of what is a freight train. >> and just to speak about best performers, worst performers, i'll take a slightly different view. the best performers are names that were absolutely broken stories, and -- and typically the names that outperform, especially in a move where you see the major allocation are, often the worst companies. names like -- not on this list, a name that should be on there, senex up 400% in the first quarter. basically this is a stock because of their balance sheet and because of the story in the u.s. housing market, you know, you get a whiff of actually a turnaround, and these are the ones heavily shorted and overdone. i agree with all the guys at the desk. solar is a place where despite the fact that i think it's a very real business, and i think it's wicked oversupplied -- >> wicked. >> wicked. i'm not even from boston, and i'm embarrassed to actually use that term. >> if you want to give it back. >> way oversupplied, people. >> take it back.

>> you'll definitely continue to see margins under pressure in first solar and the entire space even though the valuations of these companies are very, very interesting. so i think the names that actually have the best first quarters are not necessarily great names is my point though, and i would be a little bit cautious, if you look at that lineup, i think there's some names that are a little expensive. i don't think bank of america is necessarily the broken company that was last year, but i think you had a name which had a chance to real back because people were so short of it that they had to get back in the game. >> look, the right strategy, get the china, pmi coming out this week which matters more than the hsbc. on good friday you'll get the jobs report and then earnings. the way to look at it is to look at sectors, and what most people right now are missing is this market has changed. if i told you that gold and silver would be down 4% in the last couple of days, if energy would be down 5%, you'd say, well, the s&p is going to be down accordingly. it is not. this is a different marketplace. this is about technology. this is about financials. the time really isn't right now

for coal and energy and the precious metals. this is about a consumer discretionary name that works so on pullbacks you're lacking at ralph lauren and tjx. those names will continue to work just like large-cap technology. >> on the best performers list, whirlpool is on that list and watching jim's show last night, he had the show of jardon on, a plants-maker. they have grown by acquisition and own from mr. coffey to bicycle cards to coleman. take a look at their multiple. they trade about nine times forward earnings. this is a pretty well-run diversified company. i don't think they are given the multiple they deserve because i think frankly a lot of people are scared that maybe there's sechelttons in the closet. they have been in business long enough to get past that. go take a look at jim's interview. >> speaking of whirlpool, mike, a name you've actively traded throughout the sort of housing run. >> yes. we were in whirlpool where we were long the stock down in the low 40s. did great with it.

short it had a little too early. we're shot in the high 60s. the stock is trading up in 76 right now, but we look at whirlpool. it's recovering because of the demand in housing, and the housing recovery we're seeing. however, we think the earnings quality is not very good. emerging market exposure is starting to decline a little bit, tightening up down there. also they have tax credits that will be expiring. >> at the same time, i'm just curious because the appliance life cycle, if you take a look, actually took a look at the annual appliance report where it goes through the life cycles of various appliances. there's something like 10 to 15 years here. so even if we timed it out to the peak in housing and when all those appliances were bought, we don't see a replacement cycle for another five years or so. >> correct, and also remember, whirlpool owns the kenmore brand, and kenmore sold at sears. sears made an announcement they were shutting down over 100 stores and quitely made another announcement shutting down an additional 65 stores and looking to spin off the land's end today. news is out. sears, which has doubled and has

been a huge winner, any more negative news out of sears, i think it could get another big hit to whirlpool and expose the name a little bit. >> i agree with mike business whirlpool is an em appliance play. first quarter, one thing that was i think dominating, and joe brought up the cyclicals and the minors and things he's staying away from. i think this was overdone in the first quarter. today actually morgan stanley had the first upgrade in china it seems like in years. upgraded gdp back up to 9%. you're getting pmi this weekend, as joe pointed out. i think they are going to raise, that's the whisper. they will release triple r reserves and the people's bank of china is in a place where the worst of expectations are placed in this market. if you look at today's trade, i think what turned the markets was the cyclicals. a lot of news out there about freeport. this stock traded great. the gold miners finished up. trades that i'm in and trades that i believe in because they are valuation-based. the negativity on china couldn't be any worse than what it is and

when you see the property prices in beijing and across china, we're getting some data that says that numbers are better and property prices are up a bit, that transactions are up. >> right. >> you have some of the stimulus. the only thing people know about china that they believe in is the policy, and i think you're actually going to get that. >> let's move on and talk about one stock that was a big winner in the first quarter. that, of course, apple. the stock down after a boutique research firm said new ipad sales might fall short of wall street's lofty expectations. let's welcome the man responsible for today's report, and you say it's time to get into the sidelines, and you say the new ipad is simply not as hot as prior ipads. >> correct. >> tell me the degree to which it's not as hot. >> the first thing you know you can walk into any apple store in the country and get one. there's inventory in the stores. maybe one mod they will will sell out. last year, compare it to the ipad 2, you couldn't get it, and you actually had to -- released a limited amount of units each day in the apple stores last day. you can walk in here and get as

many as they want. >> what happens if they manage the inventory to ration it out across weeks versus if they let everybody buy it who wants to buy it? >> that is the question. the only way i'm wrong on it is that they made so many that they want to have a lot of inventory in the stores. we're actually starting to pick up details from the supply china in china that's suggesting that maybe capacity -- the factories aren't running at full capacity, and there's a chance that the number production forecasts will come down here in the weeks to come. >> do they run at capacity for ipad 2? >> absolutely they did. granted at the time they were ramping up units at the time, so you would think though because they are launching it globally, so many countries this time, that it would be running at full capacity. it's not. we're going to know in the next week or two because, you know, if i'm right, everybody watches the supply chain very closely f.forecasts come down and demand is slow, people will be talking about it broadly before the report. >> the answer to this question can't be both. is apple a retailer or a technology company? >> i think it's a technology company with retail scores.

>> so if it's a technology company, at what point do their products become xhodized and people forget they loose the as operational aspect of apple and when everybody else has devises similar to this, the price competition starts? >> that's right, but that hasn't happened yet. you know, nobody has caught up to the iphone yet. nobody has caught up to the ipad yet. it's not commodity until it can be copied. that's what steve jobs said. he always talked about pushing the technology, about always innovating about, coming out with products that are sexy. as soon as they stop doing that, then you're right. that's when it becomes commodity. >> brian, it sounds like you're saying to investors wait you get the earnings, see what happens then. >> right. >> back in october, had you a huge miss in terms of iphone sales. >> right. >> stocks came off, found support and took off again. >> that's right. >> what happens this time around if you get ipad sales, if you get earnings at a light, you get a selloff. >> you get a sustained selloff. >> it's actually something similar. you're right. last fall, a lot of people thought iphones would be in the low 20 million range. they ended up being -- >> sorry to interrupt. a trade on rimm, down about 7%

right now. it was a disappointing quarter. eps missed by a quarter and the revenue miss was enormous, a number of key departures and one of the former ceos has quit the board. a lot of changes in research in motion. the initial trade here is down sharply in the after-hours session down by about 7.5%. >> and, you know, almost like it might be the last straw for these guys, and they are making comments about looking at strategy partnerships. this is what everybody wants to hear. so to me if you get any more of this language, first of all, this is what the stock needs to turn because people know this thing is broken, and this might be the last gasp of air. >> we'll continue the conversation in a minute. do want to go out to jon forth who has been on the confrerns call. >> a sobering tone from thortsen heins. when he talked to us a couple months ago he was arguing that rimm is not a turnaround case. it doesn't need a turnaround. they just needed better

marketing. in a way, as were you saying, it's heartening to hear that he now believes significant change is needed because a number of analysts out there have been pointing to their falling average selling prices and other issues with their operations as being problematic. some other changes. he talked about his refocusing on the enterprise and core technologies like blackberry messaging and security rather than moving out into some of the other areas where they were trying to start new services. melissa? >> jon, thanks for that update. we'll bring in jon when there's more news. brian, you also cover rimm so i'm interested to get your take it. does seem important that heins finally admits that there's some sort of a problem and it does need a change. before he said it's a great product, great penetration overseas. >> it doesn't matter. they should have done this two years ago when they were being lapped by a. the bottom line is they have no new products coming into the market until q4 at the earliest and won't be able to compete. the best indication of that is the playbook software.

it won't compete and developers won't move to this platform, and it's going to be an ugly year for rimm and i wouldn't be surprise federal it's lower until 2013. >> does it become valued at the is. its parts? >> that's the question. do things get bad enough that they actually looking at selling themselves and what's the value of their knock and ip. >> how about the news today for fox con, the larger maker of the box that it sets in and other handsets around asia. maybe has an impact on the margin. certainly apple has to do the right thing and step far back from these guys from a pr perspective. >> it's actually a good sign. the bottom line is what they found is they weren't using child labor. there was no force labor, and actually the results are good for a. the good news about this is that the working conditions at fox con have come under the microscope and the media has worked in this regard. apple has been forced to take a close look at it.

tim cook was there yesterday. steve jobs never spent time in the factories and tim cook was there in one of the factories so i think what's great we now all know about the poor labor practices of the past, and now they are improving and conditions are getting better. wages are up. all a good thing for apple and factory workers. >> i'm curious, the reason you're on the sidelines is mainly because of your lack of confidence in the ipad sales, but at the same time they are facing margin pressures partly because of these labor changes that they have experienced. >> that affects things a little bit. the bottom line for me is this. analysts for the last couple of weeks have been raising their expect agentses for the ipad. guys at 9 million and 10 million units in the march quarter are at 12 and 13 million units. expectations have risen. a little bit of a hiccup. certainly as you pointed out -- >> let's go back to that original question. is it similar? >> it is similar. >> similar to october where you get a four-week decline. finds supports and takes right back off, or is it sustained

selling? >> now whether it takes back off will depend on how ipad does in june. let's say i'm right and they sell 10 million units when the street says 13. the difference could be is that -- is, that you know do, it -- do the ipad sales bounce back in june? if they don't, maybe it doesn't return. the difference last fall was that people waited and launched the phone later so you had the 37 million unit number in december and that's why this rocketed. not evident whether this will happen with the ipad 2. it's not evident whether or not people feel like they need the new ipad. people may be buying the old ipad 2, the 399 version. >> brian, thanks a lot for coming by. appreciate t.brian blair of wedge partners. all right. >> thank you. >> covered a lot of ground. >> 4g and lt. >> it's your world because even though it's available you don't take advantage of it so that is

your world. >> gee whiz. >> it is my world without 4g lt. >> upside calls on apple. that's what it sound like. >> maybe. let's go out to mike. apple, the two main focuses of our conversation with brian, did you see any unusual activity today? >> why don't we start with rimm. >> yeah. >> the options traders have begun to give up on it all together, and their interest has really dropped off significantly. opening interest in calls and puts is much lower than a few months ago, and i think people are speculating a whole lot less on the name, as if they no longer even care what they will be doing. it's not to say that there isn't significant open interest, there is, certainly been selling off. as far as apple s concerned, kind of an interesting one here because we're at all time records in terms of open interest. 3 million contracts are open. that's contracts essentially on 300 million shares of stock. i mean, that's almost a third of the float which is a really substantial interest, and to joe's point. i think it's kind of a good

opportunity if you're long the stock to look at start selling premium. we're starting to see some cracks as far as options market is concerned. we're seeing the premiums creep up, and they are basically at a relative high even thought the s&p lately we've been seeing increases there, too, at a high in terms of premiums relative to the rest of the sglarkt do want to hit the volatility playbook as well as long as we're in the options world here. vix down 30% this quarter could. this be a meaningful signal as we head into the new quarter. mike, what do you think? are you taking advantage of these low volume tilts at this point is. >> the vix has pulled way back and a lot of people are looking at that as there's not a lot of signs and therefore the market has to go lower. i think the market has upside. you have earnings expansion. you're going to have margin expansion so you hear people saying you can't buy stocks or can't invest in stocks if it's down at 15. i disagree completely. you can buy based on

fundamentals. >> keep in mind, too, still on the rimm conference call. we'll bring you any updates. rimm has bounced off the lows of the session, down now 5.5%. coming up next, trading best buy after a big bust today. plus, it's a sporting stock it's been an all-star this year. our traders will make the call on whether it's got more room to run. lots more "fast money" straight ahead. ♪ when your chain of supply goes from here to shanghai, that's logistics. ♪

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so shares of research in motion really bouncing off the session lows in the after-hours session. now down by just about 3%. coming in short on the revenue sides and also importantly they have suspended quantitative guidance so we won't get any estimates for the year.

you had pointed out, joe, this is part of lowering the bar. whenever a new ceo comes in they lower the bar and taking the bar away entirely. >> kind of like we don't know so why should you? we've talked over and over again on the show about problems that are structural for rimm and they are not going away. jaguar international up in canada, i don't know from a risk management standpoint or not if they are in. if they are in, i think it's ludicrous. why has there been no activism in rimm? why are there no carl icahn's or others going after rimm? it's because most people understand -- >> it's a lost cause. >> significant challenges here. i think rimm goes below ten bucks. >> is that a warning sign that nobody is willing to go in and shake it up and unlock value because maybe there's no value to be unlocked? >> the way they unlock value is figuring out what the comments are worth. comments on the tape. all our options, coming out

right now. we were playing the song "london calling" when we came in from the break. do everything for a reason here on "fast money." is vodafone coming in to take these guys over, i don't know? >> i thought they were playing high class with your shirt. >> let's not talk about shirts, are you kidding me? >> i'm going to be the outlier here and say the tact that rimm is not getting lambasted which apparently it's not right now might be an indication that the worst is over in terms of the stock, not the company. >> at hitting there's a problem is a very important first step. >> you've been to those meetings? >> i've read about them. >> well, i'm just saying. we'll see what happens. >> stock is down 2%. >> bouncing back. >> there has been a lot of talk that some of the big private equity firms were looking at rimm. that rumor has been out there a long time that. still could be out there. >> let's talk best buy, reported mixed fourth-quarter earnings and announced they are closing 50 stores in the united states. is this the death of the big box? our next guest says not so far. let's bring in our guest.

sure sounds like it. reducing their footprint, closing stores, and they are getting smaller. >> yeah. >> what else are you looking for? >> also longer term what they are looking for is in two markets in minneapolis and san antonio. they will cut square footage and have more stores. the best buy mobile has been a really strong business for them, and they are playing the hub and spoke a little bit. fewer big box stores. they can do a lot of selling of product in the smaller stores that -- and online that may be only in the big box stores but they can do that. >> any indication as to where the 50 stores are and if they lease, if they are on the hook for any costs associated with getting out of those leases? >> that was in the guidance they talked about today, and there's some of that. that's why i think over time it will be more than 50. number one, they will see how the two markets go, and number two, as you get closer to the end of leases, i think there's more stores that -- i think there's 200 plus that can go. not tomorrow or next year but over the next three or four careers. >> how many stores do they have?

>> over 1,000. it would still -- it's a substantial part of it. >> right. >> but part of a restructuring that's going on there. >> david. >> go ahead. >> over the years i've played in best buy and kind of sworn off it after the bad quarters that they had, but you had some excitement around the stock last year. new management comes in and does a little bit of a road show. got some momentum here in the last couple of weeks, and the surprise is the capital allocation strategy. no dividend hike. i think the street was looking for that. the buyback is 750 to a billion. i think that's light. why is that? why did they miss here? >> i was actually talking to them right before i came here about dividend versus buyback. at $24, $25, buyback makes more sense than the dividend. over time we'll see where that comes. the other thing, too, if you have $1 billion paying on the dividend buying back a lot more stock over time, it's a higher dividend anyways, so i thinky that the way they are thinking about it over the long term as well, but at 6.5 times earnings, you want to buy back as much as you can. >> i look at quarter and say i

understand there's a revenue miss. then i look, inventories down 3% year over year. to me that's a good things. gross margins are better than expected and operating margins are better than expected. i say you know what? i don't love the story, but the stock to me shouldn't have been down as much as it was today, so i'm thinking it might actually get interesting again >> i think so. the title of my note is what an overreaction looks like. i do think so, and i think you can see a lot of values really starting to come around this stock now. there's a real franchise here. they are going through a restructuring. six and a half times earnings give or take on ebitda. real value on a company not going anywhere and generates tons of cash. i'm on your side on that. >> great to have you come by. your thoughts on best buy and whether or not it's getting interesting at these levels. guy? >> best buy is similar to the rimm story. they have become a showroom where people come in, look at products and then go into -- buy them on amson.

i wasn't on the call -- >> had guy yesterday in the theater as part of the best buy store watching some movies, by the way. >> what's wrong with that? >> can someone talk specifically about the competition with amazon or being able to recover some share or does this entire restructuring spell that they are focusing on competing with amazon? >> it's a great question. i just don't think that's the case. number one, wireless doesn't get sold online. tvs, shipping prices are going up. tv selling prices are going down. it's not profitable online. that's why most of it is done -- pickup in store because you can't afford the shipping. cameras, camcorders, those things, yeah, that matters -- that stuff matters online, but for the most part it's one of the most overrated issues is this threat online. >> okay. >> david, thanks. >> all right. of course, there's more on best buy tonight on how best buy is fighting to stay relevant and avoid becoming another example of retail road kill, so be sure to tune into the cnbc original documentary, "best buy, the big box fights back." don't miss that at 8:00 eastern

time. >> that's quite a title. >> "the big box fights back." must-see tv. >> fight back and win. >> let's talk dick's here. dick's sporting goods trading near 50 today. shares are up 30% year to date, but can we see more upside here? here, you point out hibb has been a good sporting goods, caters in the southeast, excellent company. a stock you want to own. cut down in the last couple of day but back to dick's. they make a phenomenal presentation in that store, and i think that's what retailing is all about right now. it's about the experience. they are doing that. earnings are growing. i like dick's and i think it continues to go higher. >> 19% eps growth this year. valuations are fair. stock, looks like it's rich, but it's not. we've liked this name for a long time. pks goes higher. >> you've got an options trade on dick's for "options action." >> what i was looking at is the

june 15 call spread. spend $1.45 to buy those 50 calls and sell the 55s against it for 35. a nebt debit of 1.10. you know, when we look at call spreads, this is one of the lower probability bets because you're laying out premium and making a directional play. in this case i think this one is cheap enough that this is probably one of the better ones you can do if you're going to play it from the long side. >> okay. catch more "options action" tomorrow and follow us on twitter to get concentrate updates. coming up next, "fast money" goes international or internacionale. the best emerging market plays and we're trading the global plays from china to europe so stay right there. [ male announcer ] any technology not moving forward

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all right. >> i'm starting to see the trend. now i'm starting to get it. we started with that lady gaga person, right. >> that lady gaga person. >> and this is "china grove." right or wrong, timmy seymour. >> i'd like to believe we were thinking about talking about emerging markets the whole show which is why last block we went to london. >> the point here on emerging markets is if you look at this chart, this is the eem against the spy. time to buy the eem and spell the s.p.y., and we're taking about an 8% range that they are trading in. back in august is when the trading relationship. we know what the s&p has done. eem came out of the gates stronger and has sold off. time to rebuy it against the s.p.y. >> need to go out to jon fortt,

rimm shares well off session lows. jon? >> you know why they are off the session lows, reality is being preached. thorsten heins says the best way to drive value to stake holders is to turn the company around. the man who a couple months ago said they didn't need a turnaround but after two months in the driver's seat he thinks they do. pointed out a couple of things, number one, lack of lte phones and high-end devices. 17% of rimm sales are coming from the u.s. so lower end devices selling overseas. they plan to aggressively innocecentivize blackberry saled the older devices as well. blackberry 10 he said is still on track for later this year. help to have it out to carriers in the early summer to -- to get them approved technically. and also says there's too much complexity in the business. the cfo now talking about cutting back on the number of manufacturing locations which over time should improve margins. back to you. >> all right.

jon fortt, thanks so much for that. it's sort of odd and ironic that he finally says what is obvious, that the best way to incentivize shareholders is to turn the company around. >> well, they have been trying, and -- and actually more of these comments sound a lot like the old story which, you know, may turn the stock back a little bit. >> in what way? >> again, they are talking about their future in a way that they are ready to compete with the product that they have now, and i don't think anybody feels that they can. >> even if they do this cleaning of the house and improve margins by driving down operational expenses? that's still not good enough? they can't ever get it back together. we were just having this conversation, you and i are still carrying these things around, as much as you hate the company and the stock and feel pessimistic about the future you're still holding on to one. >> i'm amazed i still hold on to it and it tells you the opportunity that they have had. had people so caught on the business enterprise side of the business, and yet i don't see rimm cutting expenses and leaning down and bettering their margins as being the answer to

this company's problems. they are not competing. and for me it's about figuring out strategic options to maximize the value of their business right now which is what they need to focus on. >> let's move on. long-term investing, your worries weighing on the markets once again. while stress overseas will continue to hit the united states, there are plenty of actionable ways to make money here. joining us is credit market central arteryist and co-founder of capital context, tim backshall. we were told today that there's much more trouble ahead. how bad do you think it could get over there? >> it could get quite bad, melissa. there's an aversion to reality as the $2 trillion or so over the last months is now sort of starting to be faded. the bond markets over there have been so overwhelmed with sort of self-dealing by the government -- by the banks

themselves that they have disconnected from the credit derivative market for one, and they have sort of disconnected from any sort of sense of medium term reality in another stat, and really it comes down to the fact that there's been such a flood of liquidity. it's had a lot of unintended consequences are and now it's one out of gas a little bit, and that's coming back to them. nowhere is that more obvious than in the difference in spread, difference in risk between banks that took loans from the ecb and the banks that didn't. >> let's get to some of your actionable ideas here. you say avoid broad equity exposure, especially the financials. be long investment grade quality bonds and avoid high yield unless you're very confidently bullish. specifically, tim, are you talking about europe or the united states here? >> no. this is very much the u.s. >> okay. >> what we've seen over the last month to two months is for the first six months of the rally,

first sort of four or five or six months of the rally, equity and credit marks in sync, perfect, as would you expect. the flood of liquidity floats all boats. the last month or so the high-yield market has done a very different things. it's gone very sideways as equities have sort of pushed on ahead and typically as it did in q1 and q2 of last year, that's been a warning signal that things aren't all rose fitzgerald kennedy -- all rosey so they are anticipating getting blown down by that hurricane rather than holding a broad equity portfolio. >> tim, we'll have to leave it there. thanks for your time. hope to hear from you soon. tim backshall of capital context. would you agree how bad things will get in europe, that they will get much worse and more importantly for u.s. investors that it will actually impact the united states because we've been increasingly embracing the assumption that there's decouple going on and we can go higher in

spite of europe? >> if it gets really bad in europe, yes, obviously it's going to come over here. what's going on over there with the ltro, they have continued to throw liquidity at the system. that's worked so facts and circumstances and i don't see why it's not going to continue to work. also, if you look at the u.s. multi-national companies that are reporting earnings, they are still seeing some positive demand over in europe, so, no, i don't think -- i think they have figured out how to figure the problem. it may take some time though. >> coming up next, there's a big bearish sign in 2012 sizzling stocks. find out which high-flying stocks on the street they are itching to short. stick around. more "fast money" ahead. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements.

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holly davidson is one of america's most iconic brands. three-quarters of its revenues come from the united states and the company's stock is trading in the fast lane of 25% so far this year. cnbc's jane wells joins us from canoga park, california with more. >> you're on one. >> stop it right now. >> reporter: doesn't this look

perfectly natural? don't i look like i was born to be wild, and i just would come out of the garage every morning in this with these shoes, and i've got room on the back, boys. >> yeah, right on. >> reporter: shoes. anyhow, harley shares have really been revved up late lit they have reached their highest level in five years. some price analysts now are suggesting price targets of $60 or higher. this is a company that's had a very good 2012 so far mostly thanks to strong sales in the u.s., projected by many analysts to be up double digits. america still accounts for 71% of sales. why the acceleration lately? well, nice weather and high gas prices. >> it looks good, wrapping up the third month of the year and all three months have been good. i'm hoping it carries phyllis theroux the spring and summer months. >> reporter: well, some analysts with concerned that the good news for q1 may hurt q2 as some of the sales were pulled earlier, move forward because of nice weather and harley

continues to restructure and will institute new systems that could cause a hiccup and even though bike sales actually trend with home sales, harley has finally gotten the upper hand. >> one thing harley has done really well over the last several years is to reduce supplies such that the supply demand equation is working in favor of their current owners. if you own a bike today, you've got equity in that bike, and if you want to trade it, you get good value for that bike. >> he's got harley. oh, i'm sorry. he's got harley at outperform and bmo capital raised them to outperform. seeing a lot of sales to first-time buyers, women, minorities, younger riders so basically everybody -- nobody on the set except for melissa, and they also say that ironically for such an iconic american company its real growth prospects are not in america, they are talking about brazil, china, india. >> yeah. >> everybody loves a hog, right?

jane, thanks so much. have fun out there. >> she should ride off. >> jane, got to wear a helmet, jane. >> that's true. >> set a good example. >> reporter: oh, that's right. >> jane wells. >> i'll get right on that. >> thank you, jane. coming up, the ceo of idp will make the case for why his stock is a buy right now. be right back. ♪ head out on the highway ♪ looking forred a very tour omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like o.

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>> sorry. >> yeah. >> sure, us a would say. >> great tunes. way to go, lydia. >> time for rate my stock. a segment where ceos tell us why investors should take interest in their companies. today we're looking at telecommunications. let's bring in howard jonas, the chairman and ceo of idt. howard, great to see you. give me the 30-seeked spiel on what your company does and how it makes money. >> well, i was listening to you,

at the beginning of the show. we're sort of the apple for poor people. we make it possible that you're seeing the debit cards in stores where people can buy them for $2 or $5 and make calls back to mexico or guatemala, wherever. we sort of revolutionized that business and made it so you just give us your telephone number, and you go in a store and pay $2 or $3, whatever you want. you don't lose the balance on your cards. now we're adding new products on so you can pay your relatives' phone bills in foreign country. soon you'll be able to wire money and while we do that we carry 7% of all the international money in the world for all the phone companies. >> what are your profit levers? sounds like you make money. the biggest lever would be having people increase the amount of minutes they buy. >> well, we may -- we certainly make money from increased minutes, and the minutes on our products are up over 300% year over year, and we hope to do

that again this year. we make money. we sell at 80% margin towards the phone companies so that's profitable for

let's get to the final trade and go around the horn. mike? >> rnf, may still have some room to the upside here. >> tim seymour? >> buy the 5% down move in mosaic. indian demand not dropping off. >> steve? >> carlos santana, a great tune by santana. >> underrated. >> excellent point by you. >> we mentioned red hat. remember we said if you want a beta stock, red hat, put on your little google machine. now is the time to pull the rip cord and trade like 16 million shares. if you're in it, take profits. >> all right. mike murphy? >> wnc, had a 10% pullback. big acquisition. it's a buy. >> joe? >> buick eye partner bpl and given the phone ringing at&t verizon as well. >> thought it was creepy. >> good call by colin gillis. >> it was funny. >> all right. >> what a way to end the show. i'm melissa